Are New Vehicles Too Expensive?

[billt460]

These, "Cars Cost Too Much", threads pop up from time to time. The biggest issue that seems to be overlooked, is higher cost does not directly translate into less affordability. Let's look at the numbers.

In 1970 the average new car costs $3,542.00. While the average yearly wage was $9,870.00.

https://www.google.com/search?sourc...iz.....6..35i39j0j0i131j0i10.xUhYxOuyPCg

https://www.google.com/search?ei=GE...304i39j33i10j0i7i30j0i8i7i30._yAX5lm0Sj0

48 years later in 2018 the average new car costs $35,285.00. While the average yearly wage rose to $59,055.00.

https://www.google.com/search?ei=3k...i10i30j0i8i7i30j0i8i30j33i10.pT_EbdLwfpc

https://www.google.com/search?ei=ik.......0i71j35i39j0j33i22i29i30.ifo_nQkwB74

So going by these rough averages, in 1970 the average new car costs around 35.8% of the average yearly income. Moving on to 2018 the average new car costs around 59.7% of that same yearly income. Or a relative increase of 23.9% in 48 years. But that's not a fair and realistic comparison. Because today's new cars are far better equipped than cars manufactured almost a half century ago. In 1970 if a new car had an automatic transmission, power steering, AM radio, and A/C, it was considered "loaded".

Today these same cars come standard with all of that, and whole lot more that's included in the base price. Like turn by turn navigation, power seats, windows, door locks, cruise control, back up cameras, much better trim, paint, upholstery, and instrumentation, and about a dozen other things I'm forgetting at the moment. So when all of that is factored into the equation, the additional 23.9% cost comes out to be much less.

Granted while I can understand that some people, (of which I am one), don't necessarily want, or enjoy being basically forced to pay for all that. It doesn't change the fact it does add increased value and desirability to the newer vehicles. So when everything is factored in, today's new cars aren't all that much more costly in relationship to everything else. Prices always go up over time. But fortunately so do incomes.

 

[Kestas]

After a/c, automatic, ps, pb, pw, and radio, what more does a person really need for a comfortable car?

 

[Mr Nice]

Originally Posted by Kestas
After a/c, automatic, ps, pb, pw, and radio, what more does a person really need for a comfortable car?


They need they optional $8500 Glitter & Glam package...... with air conditioned hand stitched Prada leather seats, air conditioning vents from the ceiling, 18 speaker 500 Watt stereo system with Dolby Surround and subwoofer, WiFi , adaptive headlights, radar cruise control, 20 inch wheels, navigation with voice activation to nearest Starbucks, auto 'eyes closed'
parking assist , .... etc....

I am ordering a bare bones no option 2019 Grand Sport Corvette cause all the cars at the dealer have $20K in unnecessary options.

 

[Hall]

Originally Posted by Kestas
After a/c, automatic, ps, pb, pw, and radio, what more does a person really need for a comfortable car?

That's for them to decide, not you nor I.

 

[DweezilAZ]

Leasing.

Buyers pay to subsidize all the goodies lessors demand for their short term rental, low monthly payment new car experience. So that crap is made standard equipment to attract people who rent cars, not people who buy them.

The target has shifted.

Try finding a car without all that connectivity, infotainment, electronically controlled, digital computerized clap trap. Those are expensive gimmicks, not actual value added.

Plus avoiding the luxury of being beta testers for DI, CVTs, DSGs, and the latest "cutting edge" tech.

Suddenly it's 1974 when the prices continued to climb and Rube Goldberg emissions devices turned formerly reliable cars into gas hungry, cold blooded, back firing, unreliable and stalling PsOS. That the public kept buying.

 

[DweezilAZ]

Originally Posted by slacktide_bitog
People can't afford new cars anymore. Every new car is a luxury car. Every new car is a muscle car.

The Mirage and Spark are overpriced by at least $3000.

Nissan sells the Micra in Canada for under $10k (in Canadian dollars)

The Micra already meets US standards. They can sell it down here in the US for $8000

^This.

Every new car has to have all the gizmos and flash, even the most modest. If it doesn't the auto journos scream and b**ch about how "unrefined" or lacking it is. Or "dated". Or "stripped" as if one could even find an actual "stripped" model of anything these days.

I read one comment by a poster that claimed his rental was "stripped" because it didn't have leather or a sun roof. Oh the suffering.

 

[02SE]

Originally Posted by Mr Nice
Originally Posted by Kestas
After a/c, automatic, ps, pb, pw, and radio, what more does a person really need for a comfortable car?


They need they optional $8500 Glitter & Glam package...... with air conditioned hand stitched Prada leather seats, air conditioning vents from the ceiling, 18 speaker 500 Watt stereo system with Dolby Surround and subwoofer, WiFi , adaptive headlights, radar cruise control, 20 inch wheels, navigation with voice activation to nearest Starbucks, auto 'eyes closed'
parking assist , .... etc....

I am ordering a bare bones no option 2019 Grand Sport Corvette cause all the cars at the dealer have $20K in unnecessary options.



Don't forget the engine, transmission, frame, axles, exhaust brake, brakes, etc. that make up a pickup capable of towing in excess of 30k lbs. I had a Dually in the mid 90's, it had the highest tow rating then available in a pickup, 12,800 lbs.

As for the Corvette, I would hope if you're buying new, you are getting exactly what you want.

 

[supton]

Originally Posted by DweezilAZ
I read one comment by a poster that claimed his rental was "stripped" because it didn't have leather or a sun roof. Oh the suffering.


That's also a just one person's opinion. I wouldn't read too much into it, not until "many" say the same thing.

 

[Cujet]

Advances in manufacturing have mitigated much of the increased cost. However, you get less for your money today, with regard to interior room. Finding a large car that will seat 6 is impossible today. We are forced into trucks for the same capability.

At which point, $60,000 is the new normal

 

[javacontour]

They are too expensive when people stop buying them.

Sticker price and final sales price are often two different values.

 

[Malo83]

Originally Posted by kawie_guy
Originally Posted by KrisZ
Why so many insist on making it their business how other spend their money? Who cares what others can or cannot afford? Market is the way it is. If some are upset because they cannot get their favorite truck or SUV cheap anymore, well suck it up. That's what happens when something becomes trendy. Or move on to something that is not trendy anymore, like sedans.



Easy for you to say. You live in Commifornia and drive three cars.
I need a truck for work, and I need a truck to play. Can't do any of that with a car, or else I'd have one.
Now that trucks have become the new, trendy vehicle for folks who just use them to get a gallon of milk on Saturday, people think they need to be like a Rolls Royce, which keeps driving the cost up.
Never in my life have I needed a heated steering wheel, or 360° cameras on any of my trucks. I'd rather see the makers ditch all that sissy [censored] and start making trucks tougher and more reliable for folks like me who actually use a truck like a truck.

Yup! drive two cars and a truck and still live within my means, 83 Silverado is my daily driver since bought new in June 83, was loaded at the time everything power and AC, other car is a 2008 Chevy Malibu LTZ, again loaded, both paid off, last car is my 2017 Buick Regal GS 2.0T bought new last year, this will be my last new car purchase as retirement is in the plans for this year. Possible move to UTAH, any recommendations for a good place to live, need a three bedroom house with a three car garage.

 

[CKN]

Originally Posted by DweezilAZ
Every new car has to have all the gizmos and flash, even the most modest. If it doesn't the auto journos scream and b**ch about how "unrefined" or lacking it is. Or "dated". Or "stripped" as if one could even find an actual "stripped" model of anything these days.

I read one comment by a poster that claimed his rental was "stripped" because it didn't have leather or a sun roof. Oh the suffering.

You assume people want stripper cars-but I would beg to differ-it's only those on BITOG that wants them. Even those of "lesser means" would rather buy used and get more equipment. Remember-here in the U.S. even the poor/low income have air conditioning and at least one T.V.

 

[CKN]

ON edit-After looking at them on another source-they wouldn't sell many of these at all. These are not cars Americans want to buy.

 

[Cujet]

It's also why cars like the Elio won't succeed in the US. Americans always prefer larger vehicles.

 

[fdcg27]

I wonder where this $35K+ average is coming from.
Is it based upon the total actual cash price of new vehicles sold divided by the number sold or is it based upon the sticker prices that only a fool would pay?
I can tell you that our last two new cars came to less than $50K between them and that both have exceptional resale should we decide to dump either or both.
At the end of the day, a personal vehicle is no more than transportation from A to B.
Buyers are obviously free to spend what they'd like on this transportation and to feed as much fuel into it as they feel they can afford.
We dislike spending a lot on cars or fuel, so we've bought the daily drivers that we have.
Others have different tastes and priorities and they are free to exercise them in this country
The move to both real trucks and fake SUVs has brought exceptional deals on sedans and minivans.
Only a fool would overlook these models when looking for personal transportation suited to their needs.

 

[CKN]

Originally Posted by fdcg27
I wonder where this $35K+ average is coming from.
Is it based upon the total actual cash price of new vehicles sold divided by the number sold or is it based upon the sticker prices that only a fool would pay?
I can tell you that our last two new cars came to less than $50K between them and that both have exceptional resale should we decide to dump either or both.
At the end of the day, a personal vehicle is no more than transportation from A to B.
Buyers are obviously free to spend what they'd like on this transportation and to feed as much fuel into it as they feel they can afford.
We dislike spending a lot on cars or fuel, so we've bought the daily drivers that we have.
Others have different tastes and priorities and they are free to exercise them in this country
The move to both real trucks and fake SUVs has brought exceptional deals on sedans and minivans.
Only a fool would overlook these models when looking for personal transportation suited to their needs.



Some people want more than basic transportation while going from point "A" to "B".

If one can afford a pickup-but his personal transportation would be met by a Nissan Versa-the choice is theirs.

My pickup gets 15mpg around town-it's fully loaded and I love it. I'm happy to dump fuel in to it.

Good for you that you are capitalizing on a situation and buying vehicles nobody else wants.

 

[PimTac]

I guess I'm one of those fools buying something I wanted and enjoy driving in.

 

[Cujet]

I truly can't believe the price of F150's now. It's nearly double in 10 years.

 

[Skippy722]

Originally Posted by CKN
Originally Posted by fdcg27
I wonder where this $35K+ average is coming from.
Is it based upon the total actual cash price of new vehicles sold divided by the number sold or is it based upon the sticker prices that only a fool would pay?
I can tell you that our last two new cars came to less than $50K between them and that both have exceptional resale should we decide to dump either or both.
At the end of the day, a personal vehicle is no more than transportation from A to B.
Buyers are obviously free to spend what they'd like on this transportation and to feed as much fuel into it as they feel they can afford.
We dislike spending a lot on cars or fuel, so we've bought the daily drivers that we have.
Others have different tastes and priorities and they are free to exercise them in this country
The move to both real trucks and fake SUVs has brought exceptional deals on sedans and minivans.
Only a fool would overlook these models when looking for personal transportation suited to their needs.



Some people want more than basic transportation while going from point "A" to "B".

If one can afford a pickup-but his personal transportation would be met by a Nissan Versa-the choice is theirs.

My pickup gets 15mpg around town-it's fully loaded and I love it. I'm happy to dump fuel in to it.

Good for you that you are capitalizing on a situation and buying vehicles nobody else wants.


I'm totally with you. I want my car to have a bit of soul to it. Nobody ever got out of a Camry or Maxima and had someone else say "wow cool car!"

I don't need a Chrysler 300 with 300hp, a big 8.4" touch screen, heated seats, tinted windows, and a 500+ watt stereo to drive to and from work. I *want* that. Could have bought some soul crushingly boring appliance like Toyota or Nissan. Yeah, they're arguably more reliable, but I don't care. I *love* my 300, and even my Caliber (seriously, my stripped 2012 Caliber sxt is better imo than that 2018 Altima SV).

 

[slacktide_bitog]

Originally Posted by Cujet
I truly can't believe the price of F150's now. It's nearly double in 10 years.

This.

You know incomes haven't doubled in the past 10 years!